A high interest savings account (HISA) provides an opportunity to grow your money and reach your financial goals faster.
That said, the interest rates offered by big banks are often not as competitive as one would like, especially when compared to digital bank savings.
TD Canada Trust has two savings accounts that fit into the high interest category:
- TD High Interest Savings Account, and
- TD ePremium Savings Account
To earn interest in these accounts, you will need to maintain a minimum balance of $5,000 or more.
This review of TD’s high interest savings accounts covers their features, benefits, downsides, fees, and alternatives.
For an updated list of the best savings accounts rates in Canada, click here.
Table of Contents
About TD Canada Trust
TD Canada Trust is TD Bank Group’s customer-focused personal and small business banking business.
It serves over 15 million clients nationally and offers them access to 4,000 TD ATMs across Canada and the U.S.
The TD Bank Group was created in 1955 following the merger of the Bank of Toronto and The Dominion Bank.
It is one of the largest financial institutions in Canada and trades on the Toronto and New York stock exchanges under the symbol ‘TD’.
1. TD High Interest Savings Account
The TD High Interest Savings Account is TD’s standard HISA account for those looking to earn a higher rate in their savings held at the bank.
It offers a tiered interest rate of up to 0.05% on balances exceeding $5,000. For balances below $5,000, the interest rate is 0%.
| Account Balance | Interest Rate |
| $0 to $4,999.99 | 0.00% |
| $5,000 to $49,999.99 | 0.05% |
| $50,000 to $99,9999.99 | 0.05% |
| $100,000 to $249,999.99 | 0.05% |
| $250,000 to $1 million | 0.05% |
| $1 million+ | 0.05% |
These rates are significantly lower than what you would earn from an EQ Bank Savings Plus Account (1.25%*) or Neo Financial (1.30%).
The other features of the TD HISA are:
- $0 monthly account fee
- Transaction fees are waived with a minimum monthly balance of $25,000
- Access to automated savings
- CDIC protection up to $100,000 per category
- Mobile cheque deposits using your Smartphone
2. TD ePremium Savings Account
The TD ePremium Savings Account is TD’s second HISA account. It offers a tiered interest rate of up to 0.10% on balances of $10,000 and over.
| Account Balance | Interest Rate |
| $0 to $9,999.99 | 0.00% |
| $10,000 to $49,999.99 | 0.10% |
| $50,000 to $99,9999.99 | 0.10% |
| $100,000 to $249,999.99 | 0.10% |
| $250,000 to $1 million | 0.10% |
| $1 million and over | 0.10% |
Other features of this account are:
- $0 monthly account fee
- Unlimited free online transfers to your other TD accounts
- Access to Automated Savings
The TD ePremium Savings Account has a slightly higher interest rate compared to the TD HISA, however, it is not much better when compared to alternatives.
TD High Interest Savings Account Fees
TD savings accounts may incur fees when you perform certain transactions such as ATM withdrawals or sign up for paper statements.
Fees to keep in mind include:
| Transaction | Fee |
| Non-TD ATM in Canada | $2 each |
| Foreign ATM in U.S. or Mexico | $3 each |
| Foreign ATM in any other foreign country | $5 each |
| Transactions (bill payments, Interac e-Transfers, cheques, pre-authorized debits, etc.) | $5 each |
| Paper statement fee | $2 per month |
Other TD Bank Savings Accounts
TD offers two other savings accounts:
TD Every Day Savings Account: This is TD’s regular savings account. It has a tiered interest rate of up to 0.01% and includes 1 free transaction per month. There is no minimum balance to waive the fees on excess transactions, although transfers to your other TD deposit accounts are free.
TD Youth Account: This hybrid account (chequing + savings) is available to children 18 years and under and offers:
- $0 monthly fee
- Unlimited transactions
- Automated savings
Interac e-Transfer costs $0.50 to $1 each and regular non-TD and foreign ATM fees apply.
Find out more about children’s savings accounts.
TD High Interest Savings Accounts Alternatives
The best high-interest savings accounts are often offered by online banks such as EQ Bank, Tangerine, and Motive Financial. Financial technology companies such as Wealthsimple also do well.
Compared to a TD high interest savings account, the HISA offered by the EQ Bank Savings Plus account offers unlimited free debit transactions, unlimited Interac e-Transfers, bill payments, mobile cheque deposits, and more. Also, it has no monthly fees.
See how they compare with the TD HISA account below:
| Savings Accounts | TD High Interest Savings | TD ePremium Savings | EQ Bank Plus Savings | Neo Financial | KOHO Earn Interest |
|---|---|---|---|---|---|
| Interest Rate | Up to 0.05% | Up to 0.10% | 1.25%* | 1.30% | 1.20% |
| Monthly account fee | $0 | $0 | $0 | $0 | $0 |
| Minimum balance to earn interest | $5,000 | $10,000 | None | None | None |
| Minimum balance to waive transaction fees | $25,000 | N/A | N/A | N/A | N/A |
| Number of free transactions | None unless you keep $25k or more | Free transfers to your other TD deposit accounts; otherwise $5 each | Unlimited (includes free Interac e-Transfers and bill payments) | Unlimited (includes free Interac e-Transfers and bill payments) | Unlimited (includes free Interac e-Transfers and bill payments) |
| Noteworthy features | Automated savings plan, mobile app | Automated saving plan, mobile app | Free mobile cheque deposits; cheap international money transfer; automatic savings mobile app | Automatic savings, mobile app, cash back credit card | Automatic savings, mobile budgeting app; access to early paycheque, free financial advice |
| Learn more | – | – | Get this rate | Get this rate | Get this rate |
Related: RBC High Interest Savings Account.
TD High Interest Savings FAQs
To earn the best rates on your money if you are a TD client, you can check out their TD high interest savings or TD ePremium savings. The interest rate being offered is up to 0.10% which is lower than the best savings rates in Canada.
Online banks such as EQ Bank offer some of the best non-promotional savings rates in Canada. This comparison table shows how TD, Neo Financial, EQ Bank, and KOHO savings accounts compare.
Using compounding interest calculated on a daily frequency, your principal will increase to $10,005 after 12 months. This assumes you keep your funds in the TD HISA at a 0.05% interest rate and you do not make any further contributions. The interest earned after 1 year on a $10,000 savings is $5.
Related reading
- Wealthsimple Cash review
- EQ Bank Savings Plus Account review
- Tangerine High Interest Savings Review
- Neo Financial Savings Account Review
Do you have a TD high interest savings account? Let us know what you think in the comments.
TD High Interest Savings Account Review
Summary
Learn about TD’s High Interest Savings Account features including its interest rate, fees, downsides, and how it compares to alternatives HISA savings accounts in Canada.
